Naperville should say "No" to early IMEA contract renewal

 By Marc Willensky

Many River Prairie Group Sierra Club members are aware that IMEA (Illinois Municipal Electric Agency) wants their municipal customers, which includes Naperville, to renew their energy contracts early. This has been getting a lot of attention at the Naperville City Council, and local organizations, including ours, have spoken out against the renewal. The IMEA is one of nine partners that own and operate the Prairie State Energy Campus (PSEC), which is a coal mine/coal-fired power plant in Washington County, Illinois, and is the largest carbon dioxide polluter in our state. It's estimated that the soot pollution is responsible for 76 premature deaths in Illinois each year. 

Let's understand some key facts about the contract and renewal:

-The initial contract was signed in 2007 and expires in 2040; or 2035 at the earliest with a 5-year contract termination required. Either Naperville or IMEA can initiate the termination.
-IMEA wants the contract renewed by April 2025 and extended to 2055.
-80% of Naperville’s electricity comes from burning coal.
-IMEA has not provided a detailed plan to meet the state’s 2045 deadline to shut down or reduce carbon dioxide emissions to zero.

There are three main reasons why we should not renew early:

First, renewing the contract early will lock Naperville into highly polluting energy sources. The IMEA predominantly relies on coal, which is being phased out because of its environmental impact and the shift toward cleaner, renewable energy. Committing to coal long term could prevent Naperville from taking advantage of future clean energy technologies, such as solar, wind, or battery storage solutions and grid management technologies. By delaying the renewal, Naperville would have the flexibility to explore other, more sustainable energy options.

Second, the cost of energy is changing. The cost of a megawatt hour from renewables, such as solar or wind, continues to get cheaper as compared to coal and other fossil fuels. An early contract renewal could lock Naperville into higher non-competitive rates, and miss out on more affordable renewables as IMEA has a vested interest in continuing to burn coal. Naperville can keep its options open for negotiating better terms later or entering into new agreements that reflect market pricing.

Third, there is a risk in renewing the IMEA contract without fully understanding the future regulatory landscape. State and federal policies increasingly favor renewable energy and impose stricter regulations on fossil fuels. Naperville could face unexpected costs and challenges related to compliance if it locks itself into an inflexible agreement. By waiting, Naperville can ensure that its energy decisions remain adaptable to regulatory changes.

Naperville should say a clear no to the early renewal request from IMEA. With the goal of transitioning to renewable energy while maintaining affordable and predictable energy costs, we can use the next several years to manage our own energy destiny. Let's bring in qualified experts to work with our city so we can transition to a clean energy future for Naperville before 2040.